South Africa is in the grip of a credit crisis. In April 2025 alone, 26 000 South Africans appeared in court due to bad debt — a stark reflection of mounting financial pressures driven by high interest rates, a stagnant economy, soaring petrol costs, and the rising price of essential food items.
Yet this level of debt is not inevitable. With the right education, planning, and support tools, it is both avoidable and manageable.
That’s the driving force behind Sanlam Credit Solutions’ 2025 Credit Confidence Index, which reveals a marked generational divide in the way South Africans approach credit, manage debt, and perceive financial confidence. Based on data from over 818,000 active users, the report highlights critical behavioural trends and what they mean for the country’s financial resilience.
“Understanding these generational patterns is key to empowering South Africans across all generations to achieve credit confidence,” says Afua Darko, Head of Business at Sanlam Credit Solutions.
Sanlam’s Credit Confidence Index evaluates behaviour across three key pillars, namely financial determination, financial resilience and financial wellbeing.
These pillars help assess individuals’ ability to manage debt, weather financial shocks, and maintain healthy credit habits over time. What’s clear is that – regardless of age – there is an urgent need for tailored, accessible credit support.
Addressing debt pressure
The data shows that revolving credit and personal loans are major contributors to financial strain across all generations. Yet, many users are not using credit to build long-term wealth. Only 17% of Millennials (those born between 1981 and 1996), for instance, currently have home loans – a sign that home ownership remains out of reach for many.
In response, Sanlam Credit Solutions has scaled up its free credit-coaching services, which have already assisted over 24,000 users in the past four months alone. These coaches offer customised assessments, help correct credit-bureau inaccuracies, and guide users toward sustainable debt-management strategies.
“At Sanlam, our goal is to turn debt stress into credit confidence,” says Darko. “Financial confidence starts with knowledge and is built through consistent, informed action. We’re committed to supporting all South Africans on that journey.”
Credit stress peak
Millennials are currently experiencing the highest levels of debt stress, with over half classified as high credit risks – meaning there’s a significant chance they’ll miss repayments or default entirely.
According to records from the VeriCred Credit Bureau, 165,000 Millennials are spending more than 50% of their monthly income on debt. Many have sought help: 56% of debt-stressed Millennials have engaged Sanlam’s credit coaches in recent months.
“Millennials are carrying the weight of unsecured credit, rising living costs, and delayed asset acquisition like home ownership,” says Darko. “The encouraging sign is that this group is actively seeking support – they’re not shying away from their financial reality.”
In contrast, Generation X (born between 1965 and 1980) – although facing similar credit-risk levels – is more reluctant to seek assistance. The report suggests that generational attitudes and gaps in financial education may explain this hesitance, particularly when it comes to services like debt counselling.
How Gen Z leads
Meanwhile, Generation Z (born between 1997 and 2012) is emerging as the most financially optimistic demographic. Though relatively new to the credit system, Gen Z users are demonstrating confidence and caution. Only 4% spend more than half their income on debt, and their early habits could set them up for long-term success – if they maintain healthy credit practices.
Importantly, Gen Z is highly digitally literate and open to financial education. They are engaging early with credit coaching, learning how to build credit responsibly and avoid common mistakes.
“Gen Z is demonstrating a remarkable willingness to learn,” says Darko. “They’re leveraging digital tools, engaging in money conversations early, and showing real promise when it comes to building credit confidence. We’re seeing the early signs of a generation that could change the trajectory of South Africa’s credit culture.”
Sanlam Credit Solutions remains committed to investing in financial literacy, digital coaching platforms, and inclusive product solutions that help consumers build strong, sustainable credit profiles – no matter their generation.
